Govt sale block 'unhealthy' for investors

A "snipe" by Trade Minister Andrew Robb at his government's decision to block the foreign sale of S. Kidman & Co sends an unhealthy message to overseas investors, Labor says.

Mr Robb labelled a call by Treasurer Scott Morrison to not sell Australia's largest private land owner to foreigners on national interest grounds as "political".

And when asked by Fairfax Media if he was unhappy about it, he replied: "You might surmise that."

Federal Labor leader Bill Shorten said the government had the right to make decisions in the national interest, but suggested the division in opinion could have broader implications.

"This is a very unhealthy message to foreign investors," he told reporters in Brisbane on Saturday.

"Foreign investment is part of Australia. We need capital from overseas."

He accused the government of hypocritical behaviour, given it rejected the sale because one of S. Kidman & Co's stations is located on a weapons testing range, while allowing Darwin's port to be leased to a Chinese company.